To enact section 3721.60 of the Revised Code to require the Department of Job and Family Services to pay a nonprofit nursing home that does not participate in the Medicaid program an annual refund.

Section 1. That section 3721.60 of the Revised Code be enacted to read as follows:

Sec. 3721.60. (A) As used in this section:

"Medicaid" has the same meaning as in section 5111.01 of the Revised Code.

"Nonprofit nursing home" means a nursing home licensed under section 3721.02 or 3721.09 of the Revised Code, including any part of a home for the aging licensed as a nursing home, that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986.

"Nursing facility" has the same meaning as in section 5111.20 of the Revised Code.

"Nursing facility services" means nursing facility services covered by the medicaid program that a nursing facility provides to a resident of the nursing facility who is a medicaid recipient eligible for medicaid-covered nursing facility services.

(B) With funds appropriated to the department of job and family services for the medicaid program, the department shall pay each nonprofit nursing home that is not a nursing facility and does not participate in the medicaid program an annual refund equal to the lesser of the following:

(1) Six dollars and twenty-five cents multiplied by the product of the following:

(a) The nonprofit nursing home's licensed bed capacity as of the last day of the previous year;

(b) The number of days in the year for which the refund is to be paid.

(2) Fifty per cent of the amount the department would pay the nonprofit nursing home under the medicaid program for services that would be nursing facility services if the nonprofit nursing home was a nursing facility that the nonprofit nursing home provided the previous year to residents of the nonprofit nursing home who are eligible for medicaid and nursing facility services.

(C) The director of job and family services shall adopt rules in accordance with Chapter 119. of the Revised Code as necessary to implement this section. The director shall adopt the initial rules not later than December 31, 2007.